Santen Announces the Agreement to Purchase Merck’s Assets in Ophthalmology

OSAKA, Japan— Santen Pharmaceutical Co., Ltd., announced that it has entered into an agreement with Merck & Co, Inc. for Santen to purchase Merck's ophthalmology products in Japan, Europe, and Asia Pacific. The annual sales in these territories associated with these ophthalmic products are approximately $400 million.   Under the terms of the agreement, Santen will make an upfront payment of approximately $600 million and additional payments based on defined sales milestones as needed. Santen will also receive supply from Merck, the ophthalmology products within this agreement for a two- to five-year period. The agreement is subject to certain closing conditions, including obtaining antitrust clearance in Japan and other closing conditions related to specific markets or regions. Santen intends to fund the transaction with a combination of cash on hand and bank loans. The agreement is expected to close in a few months.    See more